100 Performing Ceos and Leaders of Pakistan

100 Performing CEOs & Leaders of Pakistan

A head of caravan needs VISION, COMMUNICATIONand COMPASSION, — basic tools for a Leader.

Dr. Allama Mohammad Iqbal

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100PERFORMING CEOs

& LEADERS OF PAKISTAN2014

Exclusive Inspiring Interviews, Success Stories and Case-Studies of Business Leaders, Presidents, CEOs, High-Profile Entrepreneurs, Women of Substance

and Difference Makers

Investor’s Guide

Ijaz Nisar

Founder & PresidentManager Today Magazine | CEO Club Pakistan

CEO Club Pakistan Publications

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Copyright© 2014 Manager Today Magazine | CEO Club PakistanAll rights reservedPrinted in PakistanNo part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form, by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the author and Manager Today. Requests for permission should be directed to: [email protected] Today Publications are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programmes. For information, please contact Head Circulation Manager Today Publications Division at: 0092 300 452 1298 | 0092 423 579 2066

Published by: Supported by:

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DEDICATION

This book is dedicated to our visionary leader, Quaid-e-Azam Mohammed Ali Jinnah, the founder and the father of the nation who defined Leadership: “The things that will destroy us are knowledge without character, worship without sacrifice, politics without principles and leadership without integrity.”I would like to express my sincere gratitude for all the help, support and assistance to the team of Manager Today. Its contribution and encouragement made the whole venture a delightful experience. Moreover, this dedication is to honour all those incredible business leaders, entrepreneurs, women of substance and the next generation of future leaders, who generously contributed to make it an exciting experience. I earnestly believe the thoughts and experiences shared will inspire many for decades.

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ACKNOWLEDGEMENT

Allah Almighty bestowed upon me the vision to come up with the idea of “Manager Today”, — a best-selling, professional learning and development magazine for business leaders, professional managers, and enterprising entrepreneurs. Working untiringly for five years, I was able to successfully compile the exclusive inspiring interviews and success profiles of many business personalities and difference makers who belong to different walks of life, in third edition of exclusive book, “100 Performing CEOs & Leaders of Pakistan”.

The book, “100 Performing CEOs & Leaders of Pakistan”, owes its existence to the unflinching efforts of the “Manager Today” team, which comprises Numan Ahmed Siddiqui, Rabika, Huma Mazher, Nadeem Shamsi, Haseeb Nisar, Saqib Shehzad and Shah Jahan. I am also thankful to the unwavering support of Ms Sijjal and Ali Khizer (Head of Research) from Business Recorder, who in their professional capacity offered their expertise. The eagle-eyed professionalism and humorous touch of my team kept the momentum, and it proved to be a great support during the long months of seeing this book through the press.

I would also like to express my heartfelt gratitude to the executive committee members who have always been with me through all rough and rocky times, and have helped me to transform this idea into reality. People like Mr. Ahmed Husnain, Mr. Rizwan Ali Shah, Mr. Saleem Ranjha, Mr. Danish Shehryar and I are the real strength behind every success that has been achieved so far.

Here, I am forever grateful to the contributors and writers; without their valuable input, the flesh of the book would have gone amiss. We all know that in the hectic routine of today’s life, it is very difficult to take out time even for oneself, but they somehow managed to do so, and it means a lot to the “Manager Today” team.After all this, I present to you the hard work of all those who have been mentioned and also those who, though, could not be a part of this page but deep down in our hearts, know the value of their participation.

Ijaz NisarFounder & President

CEO Club Pakistan & Manager Today [email protected] | [email protected]

+92 300 452 1298

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CONTENTS

● READ ME FIRST: MAD (MAKE A DIFFERENCE!) xii● MANAGER TODAY... THE JOURNEY CONTINUES! xiii● PROPHET MUHAMMAD (PBUH) AS AN ENTREPRENEUR & LEADER xix● TOP 10 BEHAVIORAL LEADERSHIP COMPETENCIES OF

100 PERFORMING CEOS & BUSINESS LEADERS OF PAKISTAN xxii● INVESTOR’S GUIDE PAKISTAN A DESTINATION FOR INVESTMENT xxvii

VISIONARY LEADERS & DIFFERENCE MAKERS OF PAKISTAN

● MIAN MUHAMMAD SHAHBAZ SHARIF (Chief Minister Punjab) 2● IMRAN KHAN (Chairman - Pakistan Tehreek-E-Insaf (PTI)) 4● SYED BABAR ALI (Advisor - Packages Ltd) .6● MIAN MUHAMMAD MANSHA (Chairman - Nishat Group & MCB) 10● HUSSAIN DAWOOD Chairman - Dawood Hercules Corporation 14● ABDUL RAZAK DAWOOD (Chairman, Descon) 18● SADRUDDIN HASHWANI (Chairman Hashwani Group) 22● KHAWAR MASOOD BUTT (Chairman - EBM (Pvt.) Limited) 26● AHSAN IQBAL (Federal Minister for Planning, Development and Reforms) 33● ASAD UMAR (Senior Political Leader & MNA Tehreek-e-Insaf (PTI)) 38● ARIF HABIB Chairman & CEO - Arif Habib Corporation Ltd. 42● JAHANGIR SIDDIQUI (Chairman - JS Group) 45● AQEEL KARIM DHEDHI (Chairman - AKD Group) 49

● DR. ISHRAT HUSAIN (Dean & Director - (IBA), Karachi) 51● DR. MUHAMMAD AMJAD SAQIB (Chairman – Akhuwat) 54

● JAVED JABBAR (Chairman & CEO - JJ Media / Former Federal Minister) 57● MIAN A. GHANI Founder -Pakistan Society for Training & Development PSTD 59● KHALID NAWAZ AWAN Chairman - TCS 62● SHAUKAT TARIN, S.I (Advisor Silk Bank / Former Finance Minister) 65● SIKANDER SULTAN (Chairman - Shan Foods Pvt. Ltd). 68 ● SIKANDAR MUSTAFA KHAN (Chairman - Millat Group of Companies) 72● TEHMINA DURRANI (Faminist & Writer) 75

● TAHER A. KHAN (Chairman, Interflow Group) 79

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● SULTANA SIDDIQUI (Chairperson, HUM Network) 82● SAIFUDDIN NOORUDDIN ZOOMKAWALA (Chairman - EFU) 85● JAVED MALIK: The Distinguished Diplomat & PM’s Special Envoy-UAE 89● HABIB AHMAD (Managing Director, Habib Rafiq Ltd). 92

BUSINESS LEADERS, ENTREPRENEURS, PRESIDENTS & CEOS

1. AAMIR M. MIRZA (Country Lead - Monsanto Pakistan (Pvt) Ltd.) 982. AAMIR NIAZI (CEO - International Textile Limited) 1043. ABBAS ALI MIRZA (CEO & Country GM - Relacom Pakistan Ltd.) 1114. ABUZAR BOKHARI (CEO - Porsche Pakistan) 1165. AFTAB AHMAD CH. (MD / CEO - Lahore Stock Exchange Ltd.) 1216. AGHA ZAFAR ABBAS (Chairman & CEO - Kansai Paint (Pvt) Limited) 1257. AHMAD HASNAIN (MD & CEO - Allied Marketing (Pvt) Ltd.) 1318. AHMED HUSSAIN KAPADIA (MD - Synergy Advertising (Pvt) Ltd.) 1359. AHSAN IMRAN (Chief Executive - Millat Equipment Limited) 14110. ALI ANSARI (President & CEO - Engro Corp) 14611. ALMAS HYDER (Chairman - Synthetic Products Enterprises Ltd. (Spel)) 15212. ANWAR HUSSAIN KHAN (CEO - Dawn Foods ) 15713. AQUEEL HASSAN (CEO - MCR Pvt Ltd. (Pizza Hut)) 16114. ARIF SHAFIQUE (Country GM - Nokia Pakistan & Afghanistan) 16415. ARSHAD SAEED HUSAIN (MD - Abbott Laboratories Pakistan Ltd.) 16916. ASAD ALI KHAN (President - AbacusConsulting) 17517. ASAD S. JAFAR (Chairman & CEO – Philips Pakistan Ltd.) 18018. ASHRAF KASSIM MACHIYARA (Chairman Fashion Knit, United Mobile) 18619. ASIF JOOMA (Chief Executive - ICI Pakistan Limited) 19120. ATIF BAJWA (President & CEO - Bank Alfalah Limited) 19721. AYESHA AZIZ (Managing Director - Pak Brunei Investment Company) 20222. CAPT. HALEEM AHMAD SIDDIQUI (Chairman - Marine Group) 20823. CH. EJAZ AHMED (MD - Haroon & Hasnain Marketing Associates) 21324. DR. ABDUL Q. KHOKHAR (Chairman - Remington Pharma (Pvt) Ltd.) 21525. DR. FARZANA (CEO - The City School ) 22026. DR. HASAN SOHAIB MURAD (Rector - UMT) 22427. DR. MAHMOOD AHMAD (MD - Berger Paints Pakistan Limited) 22928. DR. MIFTAH ISMAIL (Chairman - Prime Minister`s Office BOI) 23529. DR. MIRZA IKHTIAR BAIG (Chairman - Baig Group) 23930. DR. SHEHLA JAVED AKRAM (Founder President - PWCC) 245

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31. DR. UMAR SAIF (Chairman - PITB) 25032. EHSAN A. MALIK (Chief Executive - Unilever Pakistan Foods Limited) 25533. ENGINEER KHURRAM DASTGIR KHAN (Minister of State - Commerce and

Textile Ministry) 25934. FAISAL AFRIDI (CEO & President - Ruba Sez Group) 26335. FAN YUN JUN (CEO - CMPak Limited(Zong)) 26936. FAROOQ SHAHID (MD - FMC United (Pvt) Limited) 27337. GHULAM MUSTAFA KHATRI (CEO - Ittehad Chemicals Limited) 27938. IMRAN MAQSOOD (Chairman - YUM & English Tea House) 28539. IMTIAZ HUSSAIN ABBASI (Chairman - Imtiaz super Market) 29040. IRFAN SIDDIQUI (President & CEO - Meezan Bank Ltd.) 29441. ISPHANYAR M. BHANDARA (Chief Executive - Murree Brewery Co. Ltd.) 29942. JAHANZEB QAYUM KHAN (CM Pak / Afghan Beverages - PepsiCO) 30443. JAMSHED IQBAL CHEEMA (Chairman - Auriga Group) 31044. JAVAID NASIR QURESHI (MD - Fresenius Medical Care Pakistan). 31545. KHADIJA MUSHTAQ (CEO – Roots IVY International Schools) 32046. KHALIL AHMED NANITALWALA (Chairman - Medicam Group) 32647. KHALIL SATTAR (CEO - K&N'S Foods (Pvt) Ltd.) 33148. KHURAM RAHAT (Managing Director - Teradata) 33849. KIMIHIDE ANDO (Chief Executive for Pakistan - Mitsubishi Corporation) 34250. LARS CHRISTIAN lUEl (CEO - Telenor Pakistan) 34751. M. IJAZ CHAUDHRY (Chief Executive - Topaz Group of Companies) 35152. M. KALEEM BUTT (Chairman - Varioline Group) 35553. M. MUDASSAR AQIL (CEO - Finca Microfinance Bank Ltd. Pakistan) 36054. M. RAMZAN SHEIKH (Founder & CEO - Royal Palm Golf & Country Club.) 36655. M. S. ASAD MUKHTAR (Chairman - Banu Mukhtar Contracting (Pvt) Ltd.) 37056. MOHAMMAD ASIF PEER (CEO & Managing Director - Systems Limited) 37357. MOHAMMAD SHAHID HUSSAIN (CEO & MD - The General Tyre) 37858. MUHAMMAD ADREES (CEO -Sitara Chemical Industries Ltd.) 38459. MUHAMMAD ALI TABBA (CEO - Lucky Cement Ltd.) 38660. MUHAMMAD LUKMAN (CEO - NCCPL ) 39261. MUHAMMAD NADIM KHAN (CEO - Maaksons ) 39662. MUHAMMAD SALEEM RANJHA (Founding Director - AKHUWAT) 39963. MUHAMMAD ZUBAIR (Minister of State / Chairman, Privatisation Comm) 40564. MUMTAZ HASAN KHAN (Chairman & CEO - Hascol Petroleum Limited) 41065. MUNEER FAROOQUI (CEO - Warid Telecom Pakistan) 41566. NADEEM ELAHI (MD Pakistan - The Resource Group-TRG) 420

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67. NADEEM HUSSAIN (Founder/ President - Tameer Microfinance Bank) 42568. NADEEM NAQVI (MD & CEO - Karachi Stock Exchange Ltd .) 42969. NAEEM TABISH (Country Head - Brightex Distribution Pakistan (Pvt) Ltd. ) 43370. NAEEM ZAMINDAR (CEO - Wateen Telecom) 43871. NASEER A. AKHTAR (President & CEO - InfoTech Private Limited.) 44372. PARVEZ ALI (CEO & MD Al-Ghazi Tractors Ltd.) 44873. PROF. DR. S. SOHAIL H. NAQVI (Vice Chancellor - LUMS) 45474. RASHID HAMEED MEHR (CEO - TUV Austria (Pvt) Ltd.). 46075. RASHID KHAN (President & CEO - Mobilink ) 46676. RIZWAN U. KHAN (Country GM - Pakistan & Afghanistan Coca Cola) 47077. S MASOOD HASHMI (President & CEO - Orientm McCann Erickson) 47678. SAAD AMANULLAH KHAN (CEO - Gillette Pakistan Limited) 48179. SAJJAD SALEEM HOTIANA (Chief Secretary Sindh - Government of Sindh) 48680. SALIM GHAURI (Chairman & CEO - NetSol Technologies Ltd.) 49181. SARMAD A. ALI (MD - Jang Media Group) 49682. SHAHZAD MUGHAL (CEO - Workman) 50183. SHOAIB QURESHY (Chief Executive - Bulls Eye Communications Group) 50684. SIRAJUDDIN AZIZ (President & CEO -HabibMetro Bank) 51085. SOHAIL ANSAR (CEO - Groupm Pakistan (Pvt) Ltd.) 51786. SOHAIL WAJAHAT SIDDIQUI (Ex- Chairman PSO/Former Federal Minister)52187. SOHAIL YOUSAF (CEO - MDS FOODS (Pvt) Ltd.) 52588. SYED ASAAD AYUB AHMAD (CEO - The Citizens Foundation) 52989. SYED BABAR HUSSAIN BOKHARI (CEO - Syed Traders & Companies) 53590. SYED RAZA SAEED (CEO - Confiz) 53891. SYED SAMAD ZAHEER (GM - Nippon Paints (Pakistan) (Pvt) Ltd.) 54492. TABISH GAUHAR (Chairman - K-Electric) 54993. TARA UZRA DAWOOD (President - Dawood Global Foundation, Founder of

LADIESFUND) 55694. TARIQ SAYEED SAIGOL (Chairman - Kohinoor Maple Leaf Group) 56195. TAUQIR AHMED (Country Manager Pakistan - Dupont ) 56596. UMAIR JAVED (CEO - Tkxel) 57197. WALID IRSHAID (President & CEO - PTCL) 57698. WALID MUSHTAQ (CEO & Patron in Chief – Roots International Schools

(Pvt)Ltd 58099. YASIR QADIR (CEO - National ICT R&D Fund / Ministry of IT) 586100. ZAKARIA USMAN (President - The FPCCI ) 591

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101.

READ ME FIRST: MAD (MAKE A DIFFERENCE!)

Once it was merely a dream; today, it is a tangible reality, YES! Third Edition of “100 Performing CEOs & Leaders of Pakistan”, a book of inspiration, success stories of high profile business leaders, entrepreneurs, women of substance, educationists, philanthropists and CEOs, is in your hands Alhamdulillah! The first two editions were the best-selling books.

This is Pakistan's first-ever book devoted to the personal and professional development of current and future CEOs, business leaders, women of substance, and entrepreneurs. It is here to make a difference. The philosophy of this book is: Don't curse the darkness, kindle a candle.

The whole concept of this book lies in three words: CPD…Continuous Professional Development. This can be explained with the help of a parable.

Once there was a man walking along a beach; the sun was shining and it was a beautiful day. Off at a distance, he saw a person going back and forth between the surf’s edge and the beach. As this man approached, he could see that there were hundreds of starfish stranded on sand. The oceanic tides had pushed them out of water.

The man was amazed by the obvious futility of the task. There were too many starfish. Many of them were sure to perish. He went closer to the person; he continued the task of picking up starfish; one by one and throwing them into the surf.

He came up to the person, and said: “You must be crazy; there are thousands of miles of beach covered with starfish, you can’t possibly make a difference.” The person looked at the man, stooped down and picked up one more starfish and threw it back into the ocean. He turned back to the man and said, “It has surely made a difference to that one!”

Now, it is the right time to make a strong pledge to come out from the state of mind of desperation & helplessness, stress & depression, contradictions & controversies, paradoxes & dichotomies. And never say ‘Why even try’ rather say ‘I Can & I Will’ make a difference in the life of one person. We need to focus today on changing the hearts and mindsets of ourselves first and then of others. As Allah Almighty says.

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CEO CLUB PAKISTAN & MANAGER TODAY...... THE JOURNEY CONTINUES…!!Alhamdolillah, it is a matter of great satisfaction that the third edition of this book is in your hands. The first two editions of this book have proved to be grand landmarks and best sellers. Now, this third edition is hopefully going to hit the stalls again as the bestseller, Insha Allah.We, very carefully and after much deliberation, have selected the success stories, inspiring interviews and profiles of the trendsetters for this book of 100 CEOs, business leaders and difference makers. The criterion for the selection of CEOs, leaders and companies was based on the brightest, the fastest and the biggest, especially owing to their contributions towards economic growth, their impact on GDP, employment generation, regional and global presence, their initiations of CSR (Corporate Social Responsibility), best management practices, leadership styles, and HR engagements.These 100 CEOs, business leaders and entrepreneurs of Pakistan created almost one million jobs and earned a very respectable name in their companies. Average annual growth of these companies was above 30%. Hence, not even a single company is in loss. They earned huge amounts of revenue in terms of profitability and performance.Out of these 100 companies, more than a dozen companies have their presence in the international markets, thus earning a respectable name globally for their companies. These 100 successful business leaders are role models for the rest of the country especially for the future generations of entrepreneurs and aspiring young CEOs. The book “100 Performing CEOs & Leaders of Pakistan” is a kind of golden nugget that stimulates the passion and performance you need to move your society, business and country forward into the future through learning from the experiences of 100 leaders. These CEOs and business leaders will give you an insight of the challenges and the opportunities ahead and help you find out the latest methods of outshining and excelling in perpetually challenging business environment.Another key objective of this book is to project the role of the visionary business leaders in economic growth, creation of opportunities for future CEOs and entrepreneurs — a recipe for economic prosperity — developing responsible and ethical leaders in any organization and last but not the least how to face and overcome business challenges in turbulent times. This book is more than just simply a chronology of success stories, exclusive interviews of CEOs and business leaders or a mere compilation of their achievements, rather it is a deep insight into what drives these visionary business leaders and their core behavioral competencies. During my university days, I had always observed a great void — one could find a plethora of business books, articles on professional and personal development, management styles, and success stories of individuals like Bill Gates and Steve Jobs, big and small by the western writers — but I could not find any literature, however, existed about Pakistani CEOs and business leaders. They are real contributors to Pakistan’s immense business and economic outlook who excelled despite all odds, obstacles, frustrations, hindrances in the respective

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domains. We have miserably failed to project our business leaders as heroes — our role models serving as inspiration for our future generations. Some of these may be unsung heroes. I have been venting out such frustration at this gap between business and academia off and on over a period of time. My training and teaching experiences took a definitive shape and I resolved to bridge the gap between business & academia.Our concept of “100 Performing CEOs & Leaders of Pakistan” was born with the need that most developed countries have a huge amount of information available about their business platform and business leaders, about the thought processes of those who are at the helm of the businesses affairs, whereas, in Pakistan we have scant quality information about our business leaders. We had to start from somewhere; so MANAGER TODAY then took small steps forward that we hoped would constitute a comprehensive collection of inspiring stories; business interviews and case studies of business leaders and their organizations.During our research, we found seven key success factors of these 100 business leaders. But we named the key success factors as "Seven Secrets of Failure", these 100 business leaders did the opposite of these key factors. Finally the Seven Secrets of Failures of the top 100 business leaders and difference makers have been revealed:

1. Lack of Perseverance (Istaqamat):Most leaders fail not because they lack knowledge or talent, but because they quit. The total secret of success lies in two words: persistence and resistance. Persistence in what must be done and resistance what ought not to be done.

2. Lack of Faith (Yaqeen e Kamil):People who lack conviction take the middle of the road; and guess what happens in the middle of the road? You get run over. People without conviction do not take a stand. They go along to get along because they lack confidence and courage. They conform in order to get accepted even when they know that what they are doing is wrong. They behave like part of a herd.

3. Rationalizing (Susst - Musst):Winners must analyse but never rationalize. That is a loser's game. Losers always have a book full of excuses to tell you why they could not. We hear excuses like……

● I'm unlucky● I'm born under the wrong stars● I'm not good looking● I don't have contacts● I don't have enough money● The economy is bad● If only I had the opportunity● If only I didn't have a family

And the list goes on….

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4. Not Learning from Past Mistakes (Insanity):Some people live and learn, and some only live. Wise people learn from their mistakes. People who do not learn lessons from history, are doomed. Failure is a teacher if we have the right attitude. Failure is a detour, not a dead end. It is a delay, not a defeat. Experience is the name we give to our mistakes.

5. Lack of Discipline (Emotional Intelligence):Anyone who has accomplished anything worthwhile has never done so without discipline and emotional maturity. Emotional intelligence takes self-control, sacrifice, avoiding distractions and temptations. It means staying focused. Steam does not move the engine unless it is confined. Niagara Falls would not generate power unless it was harnessed.

6. Poor Self-Esteem ( Tasawar-e- Zaat –Takmeel-e- Zaat to Irfaan-e-Zaat):Poor self-esteem is a lack of self-respect and self-worth. It leads to abuse of one's self and others. People with low self-esteem are constantly looking for an identity. They are trying to find themselves. One's self is not to be found but to be created. Idleness and laziness are consequences of poor self-esteem and so is making excuses. Idleness is like rust that corrodes the most brilliant metal.

7. Fatalistic Attitude (Proactive vs. Reactive):A reactive attitude prevents people from accepting responsibility for their position in life. They attribute success and failure to luck. They surrender themselves to their fate. They believe and accept the predestined future written in their horoscope. They believe that regardless of their effort, whatever has to happen will happen. Hence they never put in any effort, and complacency becomes a way of life. They wait for things to happen rather than make them happen.

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This is the first time we are giving the success definitions of Pakistani people like Mian Mansha, Abdul Razak Dawood, etc. Before, the definitions of European gurus like Steve Jobs, Shakespeare and others were preferred.

Following are the few expert definitions on Success:

"One should be brave and courageous enough to take risks and tough decisions and boldly accept their consequences, as it is one of the most essential components of the spirit of entrepreneurship."

Mian Muhammad Mansha, Chairman, Nishat Group/MCB.

"Success has many sides, it is about being a good family man, and that means being a good husband and a good father. One should always struggle to be a good Muslim and give back to society. If you accomplish and create an institution, that is a great achievement!!!”

Abdul Razak Dawood, Chairman, Descon.

"It is not easy to define happiness because it is a subjective thing. Generally, people here lack emotional stability. However, no matter how many roles a person has to assume in everyday life, he should be able to maintain a balance of happiness in all of them."

Arif Habib, Chairman, Arif Habib Corporation.

"No matter what the institute is, the major emphasis should be on the development of the inner soul and mind. Education is the ability to analyse and understand... values are the fundamental touchstone on which a professional is made."

Hussain Dawood, Chairman, Dawood Hercules Corporation.

“The biggest success is that you have contentment. Losing hope is not allowed in our religion. You should be persistent. If you are constantly working towards some goal, the divine help is also there for you. If you don’t have a goal unfortunately, things would go bad for you.”

Sikander Sultan, Chairman, Shan Foods.

“Our vision is to produce world-class professional managers, business leaders and entrepreneurs for industrial and business development of Pakistan.”

Dr. Ishrat Husain, Dean & Director, IBA Karachi.

“The word ‘impossible’ is simply non-existent in a leader’s vocabulary. A thing seems impossible, if you think it is impossible. The best quality of a leader is that he dreams big, he is an idealist.”

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Imran Khan, Chairman, Pakistan PTI.

We have tried our level best to place equally all these visionary leaders, rather than to rank them according to any particular competency order. Every individual is a giant on its own and stands out among the crowd. One should not misunderstand someone who is at the beginning or at the end. The position is in alphabetic order. While compiling these success stories, KPIs (Key Performance Indicators) and interviews of CEOs & Leaders or our research process, focus is on our purpose-built questionnaire shedding light on four dimensions of leadership and management as mentioned below:

1. On Economy, Business & Finance we asked:With the country sliding back into serious economic crisis and creating extreme joblessness, how to fix the economy? Entrepreneurship is a buzzword now a day. How to create job providers /entrepreneurs rather than job seekers? We are not poor in resources but in poor governance, could good governance help us deal with this dilemma? What is your take on good governance? What are the challenges and opportunities in your industry/sector?

2. On Human Resource, Education and Development it was asked:With the commercialization of educational institutes, are you happy with the quality of business graduates being produced? What is leadership to you? Are leaders born or made? What are the challenges for the business leaders in Pakistan? Differentiate between a good manager and a good leader? What are the core competencies of leadership that you want to see in our new managers & business leaders? We are faced with a dilemma in professional ethics. How can we inculcate a sense of ethics in our managers? What are the HR challenges and strategies regarding employee retention, motivation, engagement and performance appraisals at your company?

3. About the Company and Its Future Plan:What are your vision, mission, core values and shared behaviours that define your corporate culture? Do you have the high performance team with the right skill-set, mindset and value-set to lead the business growth? Is training, coaching and mentoring a high priority for you? How much time/resources do you devote to this? Can you share your contribution towards CSR (Corporate Social Responsibility)? What steps should be taken to empower women professionally? Does your company have any harassment policy? Please share your best management practices for others to follow as a benchmark? Do you have any plans of expansion? Where do you see your organization five years down the road? Does your company envision to be Pakistan’s multinational?

4. Personal and Professional Life Revealed:Please share with us your professional background as to how it all started? How would you define your leadership and management style? What has been the toughest decision that you had taken so far? Define success in three key words or phrases? What is your idea of happiness? From where do you get your inspiration, personally as well as

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professionally? What is your favourite book on personal &professional development that you would recommend others to read? What do you consider to be your greatest achievement or failure? How do you manage workplace/business stress? How do you keep your work-life balance? Any significant note of hope to the younger generation of business leaders, entrepreneur, and managers.

This exclusive book bridges the gap between Business and Academia providing continuous learning opportunities. The purpose of this book is to promote reading & learning culture, healthy community, renewed value system, a strong family institution & developing excellence in human beings. This humble effort is aimed at making a difference with individuals, organizations and communities by attempting to bring change in their current cognitive framework. The focus of this book is to “learn from others” experiences, providing a space to build positive relationships, bringing new insight & inspiration and developing leadership with new consciousness.

By the grace of Almighty Allah, previous edition 2013 was dispatched to more than 100 countries, their ambassadors, high commissioners chambers of commerce, federations and diplomats. We got a huge response from them. This humble effort of the book does not claim anything big but can make a big difference by creating softer and corporate images of Pakistan in international horizon.

This book is also part of the syllabus of many business programmes for students of entrepreneurship and management. It is doing positive branding for Pakistan. It is highlighting the success stories of Pakistani entrepreneurs that never happened before in Pakistan before. This book is bringing a mental revolution in Pakistan by reviving the book-reading culture in Pakistan.

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PROPHET MUHAMMAD (PBUH)

AS AN ENTREPRENEUR, CEO & LEADER

Prophet Muhammad (PBUH) enlightened the world with his celestial charisma and gave a mode of demeanour in all aspects of human beings with his impressive persona. Not only his spiritual presence illuminated the murky era of orthodox conventions, but also his corporeal frame did magic in the epoch of ignorance and darkness. He was a role model in all walks of life and still he is an epithet to be followed blindfold. He is an incarnation of mercy, pity, peace and love. He has taught human kind the dexterity and adroitness to outshine in both worlds i.e. this world and the hereafter. The purpose of including and bringing in the biography of Prophet Muhammad (PBUH) as a deft entrepreneur and a great leader is to elucidate to our present generation that he truly is an ideal to follow not only in religious facets but also in our businesses affairs.

Poet of the East Dr. Allama Mohammad Iqbal said:Nigha Buland, Sukhan Dilnawaz, Jaan Pur SoozYehi Hay Rakhte Safar Meery Caravaan Kaliya(A head of caravan needs VISION, COMMUNICATION and COMPASSION, — basic tools for a Leader.)

Allah Almighty says in the Holy Qura’an: “You have indeed the Messenger of Allah an excellent example for him who hopes in Allah and the Last Day, and who remembers Allah much (33:21)”. In this verse, Allah directs Muslims to follow Prophet Muhammad (PBUH), who is an embodiment of great virtue, values and manners. The known history of the world divulged that trade and human beings remained part and parcel of each others. However, before Islam, no moral values of entrepreneurship were being regulated in the societies. Traders used to swindle buyers by extorting money through concealing faulty/rotten commodities and manipulating scales to weigh less. After the advent of Islam, the Last Prophet Muhammad (PBUH) carved out rules and regulations and declared ‘Islam’ as a way of life. Now even non-Muslim scholars recognize that Islam is a religion of utility and efficacy. If we go through the biography of the Last Prophet Muhammad (PBUH), we will find that he was not only a philosopher, warrior, a leader and a great influential person in the history of the world, but very rarely, a few know that Muhammad (PBUH) led a life of a successful entrepreneur and a triumphant leader. That is why, he should not only be respected as a religious leader and head of state, but should also be appreciated as a merchant who had a range of business network, market share and extensive customers on the basis that his entrepreneurship period of nearly 25 years is relatively longer than his

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prophetic period of 23 years. He not only emphasized the importance of ethics in business but also involved directly in business activities. Prophet Muhammad's (PBUH) unique communication and leadership style led Islam to spread its influence not only in Arabian Peninsula but also outside to the north, south, east and west. The key traits he carried out in his entrepreneurship and leadership were values of honesty, integrity, justice, politeness and liberty, these all were reflected in his practical deeds. Prophet Muhammad's (PBUH) skills as manifested in his speeches demonstrated to the eyes of all humankind that he was indeed a thriving entrepreneur and a great leader worthy of note.Entrepreneurship in Islam is not simply about the end goal i.e. successful sales, but by the way in which this goal has been achieved and in this regard, entrepreneurship should be based on the exemplary business conduct of the Prophet Muhammad (PBUH). It is worth mentioning that he started doing business with an internship at the tender age of 12 years with his uncle Abu Talib (RA) when he became a part of the caravan that travelled to Syria for business trip. He also got preliminary trade experiences from his uncle for several years around Makkah. With experience and honesty in business, he gradually became the trustworthy trader among the business community (investors) in Makkah. He first became business internee, later business manager and then investment manager and ended up as an investor. During his trading period, Last Prophet Muhammad (PBUH) revealed his highest capabilities of running business that even the Makkans attracted some investors to entrust their capital to be managed by Muhammad (PBUH) with the principle of sharing (Musharaka-Mudaraba) and payroll. At this stage, he switched over from business manager (Managing his own business) to an investment manager (Managing capital investors).At a time when there were no ethics of business, Muhammad (PBUH) got the opportunity to expand business and reached trade centre in the Arabian Peninsula. His honesty in business became attraction for the local investors to invest their capital with Muhammad (PBUH) — one of whom was Hazrat Khadijah (RA) who later became his first wife.At the age of 25, he married Hazrat Khadijah (RA) who was a successful business woman in the region. With this, he became owner and manager of Hazrat Khadija's (RA) wealth. Honesty, dedication and integrity increased the trade volume that made him a business owner. He then gave more importance to develop business through trade expeditions regularly. He visited regional and international markets in order to retain customers and business partners. To promote business he visited Yemen, Syria, Basra, Iraq, Jordan, Bahrain and other Arab trade cities. Just before the start of the prophetic period, he spent a lot of time in establishing business and came out to be a thriving entrepreneur. Islam does, not only, motivate Muslims to be entrepreneurs, but in fact, it makes it obligatory for them to work hard and gain lawful earnings beyond their immediate needs. It is true that earning ‘halal’ income through entrepreneurship and helping others to earn a living spares the public wealth from being exploited by a few and discourages them from being dependent on the state.

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It is worth mentioning that entrepreneurship in Islam is highly regarded as it provides not only incentives but also a framework conducive to economic and entrepreneurship development.According to Holy Qura’an “And when prayer is over, disperse in the world and search for the bounty of Allah” (Qura’an, 62, 10). In another place it is cited that “It is He Who made the earth manageable for you, so traverse ye through its tracts and enjoy the sustenance which He furnishes: but unto Him is the resurrection” (Qur’an, 15, 67). Searching and steering through the earth’s tracts goes beyond simply finding employment opportunities or even engaging in basic entrepreneurial activities. The search implies the exploration of the unknown in order to discover new horizons and uncover new opportunities for the benefit of humankind.The verses of Holy Qura’an and Ahadiths of Prophet Muhammad (PBUH) explicitly praise entrepreneurship and commend moral entrepreneurial activity. At one point Quran said: “But Allah hath permitted trade (bai) and forbidden usury (riba)” (Qur’an, 2, 275). The economic transaction of buying and selling for profit (bai) implies the existence of the entrepreneur.A Hadith of Prophet Muhammad (PBUH) said, “A faithful and trustworthy businessperson will be resurrected on the Day of Judgment with the prophets, the truthful and martyrs” (Ibn Majah; al-Tirmithi). He explicitly emphasized on the importance of entrepreneurship and encouraged Muslims to actively participate in business activities. Nu’aym Ibn Abd Al-Rahman narrated that Prophet Muhammad (PBUH) said, “Nine-tenths of the sustenance (rizq) is derived from trade (business ventures)”.Likewise, second khalifah, Omer Bin Al-khattab (RA) who was also a trader, used to say “nothing is more beloved to me than to earn my livelihood through my own hard work and efforts”.A number of world-known thinkers have acknowledged the progressive nature of Islam and recognized its positive attitude towards prosperity and desirability of engaging in productive business activity. They also stated that “Islamic tradition has always included a positive approach to economic activity” and divulged that Last Prophet Muhammad (PBUH) was “a merchant before his Prophethood”. The greatness of Prophet Muhammad (PBUH) lies in being immensely booming in both the worldly and spiritual leadership. A successful leader may not have time for house and a righteous man may not be successful in the worldly affairs.To put in a nutshell, Islam is, not only, a religion of peace and tranquility but, also a religion of trade as it has various examples of the prophets and saints who have stressed the significance of entrepreneurship and rights of ownership. Besides this, Islamic codes of business ethics, which have been carved out 15 centuries ago by the Last Prophet Muhammad (PBUH), are not only applicable to date but they would remain as hallmark until the Doomsday.

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Twelve Traits of Leadership according to Holy Qura’anProphet Muhammad (PBUH), while unfolding the traits of leadership said “Everyone is custodian of his/her subordinates and is answerable for his job on the DAY OF JUDGEMENT.” Following are the traits which a leader/head must possess.

Taqwa (Fear of Allah)Human beings should avoid committing sins. Unless one has no fear in his heart, one cannot avoid sins. To achieve Taqwa, one should imagine the wrath of Almighty Allah.Ikhla’as (Sincerity)It is imperative for everyone to achieve the Will and Pleasures of Almighty Allah instead of doing a task for the sake of public happiness.Shukka'ar (Attitude of Gratitude) After getting any comfort, a man should thank Allah. Saba’ar (Patience & Persistence)Patience is of three kinds. Saba’ar Alta’at (Performing Prayer, Fast, Haj and Zakat); Saba’ar Anaal Massia (To keep away from doing offences) and Saba’ar Alal Shaed (To remember Allah at difficult time).Sadda’aq (Truthfulness)To achieve a height of a task is called Saddaq, based on Aqwaal, Afaal and Ahwaal. Commitment to a task is Aqwal; Every task should be according to Islamic teaching is Afaal while all tasks should be according to Hadith and Sunnah is called Ahwaal.Tawaza’a (Submission)A man should consider himself as a meek and modest and do not even think of taking revenge upon anyone.Hikma’at (Wisdom)Intellectualism bestowed upon a soul by Allah is Hikmaat. One should talk and debate intellectually and rationally. Tawakka’al (Trust in Allah)If a person does utmost to accomplish a task and seeks Almighty Allah’s Blessing for its result is called Tawakkal. Ikhla’aq (Ethics)Ethics are necessary to live a prosperous and progressive life as these are natural. Without ethics, this world can become a mess. Hasoul-e-Ilm (Seeking knowledge)Imam Malik (RA) said knowledge is a high-merit asset and one can ascertain insight through knowledge.Shuja’at (Courage)The trait of courage protects a man from the agonies and woes and that man becomes a hard rock against difficulties and challenges.Shura’a (Consultation)

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To consult the people concerned and not impose any decision upon others is called Shura. Reconciliation on an issue should be achieved while opinion should be given when inner self is satisfied.

Top 10 Behavioral Leadership Competencies of100 Performing CEOs & Business Leaders of Pakistan

This indigenous study is about the leadership trades of Pakistan’s top CEOs, business leaders and entrepreneurs. Leadership related to the corporate sector is distinguished from other sort of leaderships since it deals only with economy of the country and plays a vital role in development and growth of the country. This is leadership that brings success to people and the country at national and international levels. This topic will highlight the key factors, styles, attitudes and characteristics behind the success of business tycoons of this country, featured in the book “100 Best Performing CEOs & Leaders of Pakistan”Lots of work has been done on the topic of leadership, but unfortunately, no serious and solid work is available on the leadership of Pakistan’s business people. Due to this reason, this minute but comprehensive qualitative study has been done to bring forth idiosyncrasies and leadership qualities of business tycoons of this country. It is important to know particular traits of these business leaders to determine the factors of their success. The aim is to identify these behavioral leadership characteristics and help metamorphosing an ordinary businessman into a successful entrepreneur of this country while, on the other hand, such characteristics would be best guidelines for starts-up for running their business on successful lines. Some people believe the real cause of their success is a stroke of luck, while some are of the views that some mysterious forces are behind their business triumph. But, in reality, there are concrete factors constantly working behind their success. To study this approach it was needed to work on it.

RESULTSLeadership is not a term but a dynamic process that makes any person successful. As far as a business person is concerned, he does not take this term for granted; rather, he gets success by passing through this process and the volume of success depends on how effectively he sharpens his acumen during this period. Business community, all over the world is considered to be very successful, affluent, satisfied, and role models for the upcoming generation. Everyone wants to know the secrets of their successful business. On these grounds, this research has been conducted so that these secrets should be revealed to ordinary people too. The following are those factors frequently recognized by most of the business leaders:● Emotional Stability● Optimism ● Assertiveness attitude ● Business knowledge/excellence ● Professionalism ● Effective management style

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● Family’s support● Strong belief system● Integrity● Global Vision

This research totally focuses on Pakistani CEOs and business leaders in context of their respective local environment and circumstances. Their business models and successes could be compared with their international peers. Analysis, drawn from the given data reveals ten major factors although they are different but closely correlated with each other. The first factor they use for their success is ‘optimism’ and this is their Pollyannaish bent of mind towards life that helped them to compose their success in this world. The 1 st

subject reported very clearly, “We should not lose hope or think that we cannot get out of difficult situation, all the leading people and countries were able to achieve glory only after braving hard times”. In this regard other two subjects reported the importance of clarity of vision and global mindset. This shows the leader’s positive approach towards future and hope for better results in terms of success. The 4 th subject reported “leadership is the ability to see things differently, bring about change in the people showing them new directions, raising hopes and transforming culture”. The 5 th subject said, “Leaders are those who raise hopes amongst people. Visionary leaders are those who can convey their message to people in an effective manner and then inspire them. They are who can articulate the vision”.

The other important theme extracted from their success interviews is assertive attitude of CEOs and leaders that provokes confidence in their abilities and themselves. All the subjects narrated in different ways only one uniformed opinion and that is how to be efficient, be strong and take risks in business regardless how difficult the situation is. As 1st subject in his interview said, “A leader should possess the willingness to lead people upfront and take risks. Leadership is having the courage to stand up, bring about change and be counted for your actions”. The 2nd subject reported, “Your independence and your own decisions lead you towards great success”.

Another combined theme extracted from these interviews is business knowledge, excellence and humility of business leaders, different leaders report differently about the key factors of success in business that totally depends on the leaders himself. The 1 st

interviewee said, “ Quality of education, knowledge about the business and your own dreams, skills, excellence in your work, your own values, humility, and sense of direction take you towards great achievement in business field”. And the 2nd interviewee said, “Your hard work, struggle, commitment, passion and strong beliefs lead you towards success”. And the 3rd said, “We must be recognized as true professionals who possess humility and also provide decent services.” The 4 th subject in the interview very clearly defines in his own way: “Naik Niyati, clarity of vision, dedication and team work are the values religiously followed in our organization and I assure you that by Allah's grace, guarantee success”. Most of the interviews find the characteristics of self-fulfillment,

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strong belief in oneself, sense of ethics, ability to inspire others and education that contribute to business leaders’ personal and professional success. Discerning all the qualities mentioned above can bring out the secrets of their success at their personal and professional levels.

Professionalism or professional attitude of a leader in business is a common theme among the 100 success interviews. Professionalism involves what I find from the coding of the 1st interview are strictly adhering to rules, objectives, management, human resource, transforming culture, professional environment, clear destiny and continuous learning. These are rules they adopted in running their respective organizations.

And other important findings about this topic are the necessity for a leader to have business knowledge and take responsibility about the business, following the long term strategy and, focusing on the quality rather than quantity. The 4 th subject quoted that a business person should keep the business at his/her own hands so that they can explore the new ways and capitalize everything they use in business. Subject 2 reported keen interest in work and time management as the right things to do in business. He said, “I used to work for more than fourteen hours a day, from eight in the morning till eleven at night. But all through that time. I only had one thing in my mind that I have to excel and get ahead in what I was doing”. And about the maintenance of quality he said, “I have never compromised on it. Moreover, I believe that one should always exceed customer's expectations i.e. always give your customer something extra. From the time I used to sell cloth on the roads. I learnt the basic lesson of selling quality products, yet perfection is a literary name that you can give to this endeavor”. This is what we call a thoroughly professional attitude in business. The 4th interviewee said, “We neither lend nor borrowed money, rather we expanded within our own resources. Because of the fact that I did not have an easy access to money, my competitors always had an advantage over me in this regard, we worked harder and always believed in the strength of our culture and values.”

The most interesting findings are that the leadership style of these leaders is totally in line with our own culture and context. From the coding of 100 different interviews about the style of management you can identify a common management style. What the 1 st subject reported about his own management style is “ability to lead people, show new directions to employees, ability to motivate people, retain your key employees, team work, and encourage strong points of your employees and empowering your key employees in your organization.” The 2nd subject answered that one should “promote a family like environment in your office, participate with staff, maintain cordial relationships with workers, conformity with each other, and most importantly focus on solutions rather than problems”. The 3rd subject clearly reported, “ Training and development of employees is an important part for the leader to promote team work, transparent dealing, aligning staff with same goals, respecting employees and encouraging an interactive style of management. I have a mixed leadership style, a mix of democratic and autocratic. I would say an interactive management style”. The subject of the 4 th interview said, “I clearly enunciate my vision to the top tier of my company's management and allow it to

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travel down to the concerned sections in the management hierarchy”. Subject 5 said, “It is a very difficult question. I think, it is very necessary to know how much knowledge you have about your business, your market and your products. This knowledge must be communicated to your colleagues and juniors”.

Family plays very important role in their success. Supportive and caring relationship with your family and their encouragement leads you to happiness and success. We found from all interviews that all successful leaders unanimously reported the role of their families behind their success. Some stated that their fathers are their role models, and that their parents’ prayers and inspiring families are the main motivation of their success. 1 st

subject reported, “I am very lucky to have a wife who shares my dreams. Work-life balance is easy for me because she gives me a lot of room to fulfill my wishes”. 2 nd

subject said, “My parents were very simple people. They did not have great ambitions. They always wished for their children to learn good things and to develop into better human beings. In fact, my brother has always been a source of inspiration for me. I always looked up to him for guidance”. 3rd subject said, “My father is my inspiration both personally and professionally”. 4th subject said, “My parents are my role models in my life”.

Faith in God plays a vital role in the development of the system of their beliefs. Being Muslims they strongly believe in the blessing of Allah as they think if you leave all your cares and worries to Allah and pray to Him for success, Allah will definitely help you. So there is a strong stream of beliefs in religion present in every successful business leader as the 1st subject said, “One should always struggle to be a good Muslim and give back to society”. The 2nd subject reported, “This is all about the blessing of Allah I always seeks help from Allah in my matters”. The 3rd subject said, “I adopt the Islamic values in my business and I never go against the Shariah Laws”. The 4 th subject clearly said, “Success comes by Allah's will! There are people far more brilliant and talented than I am, but were not able to achieve so much as I have been blessed with. All of this, I believe, is because of the will of Allah Almighty”.

We conclude that there is nothing mysterious behind their success since they exhibit their talents by doing hard work that leads their business to great success. The above-mentioned characteristics reveal the secrets of their success in a crystal clear way.

ConclusionIt is concluded that, the factors significantly contribute to success in business and life; 1) Optimism, 2) Assertiveness, 3) Professionalism, 4) Effective management or leadership style, 5) Family’s role, 6) Faith in God, and 7) Integrity 8) Emotional Stability 9) Global Vision. These are considered common secrets of success and behavioral competencies among 100 Performing CEOs & Leaders of Pakistan, according to the latest research conducted by CEO Club Pakistan and Manager Today Magazine.

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Pakistan Vision 2025

“Pakistan Vision 2025” presents a strategic framework to overcome obstacles and to meet the challenges. We aim to achieve the stated goal in “Vision 2025” within a generation.We have to look for energy solutions on a priority basis, because if there would be no energy then there will be no industry, no production, no revenue and thereby no growth. We are losing 2-3% of GDP due to the energy crisis. A comprehensive energy policy is needed instead of treating natural gas, electricity and water separately.Next comes the reshaping of human and social capital: Our people are the biggest asset. Development has to be for the people, of the people, and by the people.The utilization of our indigenous resources is of prime importance for self-reliance and inclusive growth. It will set us free from foreign loans. The government is giving attention to areas like science, technology, and innovation for productivity and competitiveness with a special focus on enhancing export volume.

Then the focus will be on transforming our economy from a low value structure to a high value structure. In agriculture, industry and production, a complete overhaul is imperative. Developing a complete value chain in every cluster is the main target. Through this transition, we can increase exports and production sector performance into multiples. The backbone of development is a proper and modern infrastructure; it’s a big bottleneck for expansion. The government is focusing on urban transport, and energy infrastructure and our approach is to develop regional connectivity with China, South Asia, and Central Asia to make Pakistan the hub of trade and commerce in this region.

Development of SME’s and private sector is a major target. We have a big knot of young population. The government plans to shift youth from job seekers to the self-employed. The government will encourage them to be entrepreneurs, so that they become self-reliant instead of looking for jobs.

Without an effective public sector, no policies can succeed. Therefore, an institutional reform for good democratic governance is a major priority area, — starting from police reforms, taxation reforms, criminal justice system reforms and public sector reforms. Our public sector machine is outdated. People have lost faith. Quality service insurance and delivery is essential to have efficient, responsive and effective results. If our machine is outdated we cannot achieve our goals. By revamping public sector through merit, transparency, performance indicators and incentives driven methods, we can achieve our targets. Insha Allah.

Professor Ahsan IqbalFederal Minister for Planning,Development and Reforms

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INVESTOR’S GUIDE

PAKISTAN

A DESTINATION FOR INVESTMENT

OPPORTUNITIES FOR THE LOCAL

& FOREIGN INVESTORS

Sector OutlookThe Market | Industry Snapshot | The Opportunity

Agriculture | Manufacturing Automotive Sector | Retail MarketElectronics & Other Electrical Equipment’s | Pharmaceutical Sector

Industrial & Commercial Machinery | Textile SectorInfrastructure Telecom & IT Sector | Power-generation sector | Transportation sector

Construction sector | Mining & Quarrying sector | Financial Services SectorEducation Sector | Tourism Sector | Food & Nutrition Sector | Health Sector

CONTRIBUTED BY BOI (BOARD OF INVESTMENT)GOVERNMENT OF PAKISTAN

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Pakistan is facing enormous economic challenges today. The present government is fully aware of the fast declining trends in all macroeconomic indicators. The government’s top priority will be the revival of the economy to double the GDP growth rate, from less than 3% in the past five years to over 6% during the next five years. Sustainable and inclusive economic growth requires optimum utilization of the country’s physical and human resources and utilizing the technological potential in the industrial and agricultural sector.

The EconomyOne of the most important pre-requisite for higher GDP growth would be the progression in the investment-GDP ratio from 12% at present to at least 20% in the next 5 years. A balance is needed between fiscal consolidation and growth. Despite the unfavorable law and order situation, the investment climate can significantly recover with improved governance.

In the absence of any single strong driver for growth at present, Pakistan will have to create several mutually reinforcing engines of growth to meet the emerging economic challenges in this age of globalization.

The government will contribute special primacy to the following sectors:● Higher investment in the energy sector,● Attracting foreign investment in the agriculture and livestock sector to facilitate

exports of high value products to the regional markets,● Identifying growth prospects in the IT sector,● Large-scale infrastructure projects

Pakistan holds sizeable reservoirs of oil, gas and other minerals. The government will pursue minerals exploration and abstraction with renewed vigour while ensuring absolute protection of the interests of the nation. Foreign investment would be encouraged and facilitated in this sector. Development of this sector will be a game changer for Pakistan’s economy.

A vibrant domestic commerce is a pre-requisite for innovative entrepreneurship, quality declaration and product development. Domestic commerce will be encouraged by focusing on areas like competitiveness, fortification, market regulation, wholesale markets, retail markets, storage and warehousing, transportation and real estate.

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Foreign investmentForeign Investment inflows in Pakistan (Million US$)

Year FDIPrivatization Proceeds

Total FDI Private Portfolio Investment

2001-02 357.00 128.00 485.00 -10.00

2002-03 622.00 176.00 798.00 22.00

2003-04 750.00 199.00 949.00 -28.00

2004-05 1,161.00 363.00 1,524.00 153.00

2005-06 1,981.00 1,540.00 3,521.00 351.00

2006-07 4,873.20 266.40 5,139.60 1,820.00

2007-08 5,276.60 133.20 5,409.80 19.30

2008-09 3,719.90 0.00 3,719.90 -510.30

2009-10 2,150.80 0.00 2,150.80 -64.50

2010-11 1,634.80 0.00 1,634.80 344.50

2011-12 820.70 0.00 820.70 (46.90)

2012-13 1447.30 0.00 1447.30 119.50

2013-14 (July-Feb)

606.30 0.00 606.30 64.30

Total 25,400.60 2,805.60 28,206.20 2233.90

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Direct and Portfolio Investment ($ Million)

Country2013-2014 (July-

Feb)

Foreign Direct Investment

FPI Total

Inflow Outflow Net

Australia 9.40 - 9.40 (1.9) 7.50

Austria 32.70 - 32.20 - 32.20

China 10.80 22.50 -11.70) 0.2 -11.50

Hongkong 145.60 0.80 144.90 -7.20 137.70

Italy 51.70 0.90 50.80 0.10 50.90

Japan 21.80 9.00 12.80 15.40 28.20

Netherlands 50.70 15.30 (2.70) (0.30) 3.00

Norway 196.70 97.70 (-47.00) 0 -47.00

Switzerland 119.30 18.40 178.30 -6.00 172.30

U.A.E. 125.50 120.00 -0.70 5.10 4.40

United Kingdom 207.80 49.30 76.20 68.00 144.20

United States 129.2 45.80 161.90 -38.40 123.50

Other 272.90 276.50 -3.60 82.90 79.30

Debt Securities

GDRs

Total 1262.50 656.20 606.30 118.30 724.60

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Country Wise FDI Inflows ($ Million)

Country 2007-08 2008-09 2009-10 2010-11 2011-12 2012-132013-14 (July-Feb)

USA 1,309.3 869.9 468.3 238.1 227.7 223.0 161.90

UK 460.2 263.4 294.6 207.1 205.8 632.3 76.20

U.A.E 589.2 178.1 242.7 284.2 36.6 19.9 10.70

Japan 131.2 74.3 26.8 3.2 29.7 30.7 12.80

Hong Kong 339.8 156.1 9.9 125.6 80.3 242.6 144.90

Switzerland 169.3 227.3 170.6 110.5 127.1 149.0 178.30

Saudi Arabia 46.2 (92.3) (133.8) 6.5 (79.9) 3.2 (32.80)

Germany 69.6 76.9 53.0 21.2 27.2 5.0 (13.30)

Korea (South) 1.2 2.3 2.3 7.7 25.4 25.8 25.50

Norway 274.9 101.1 0.4 (48.0) (275.0) (258.4) (47.80)

China 13.7 (101.4) (3.6) 47.4 126.1 90.6 (11.70)

Others 2,005.2 1,964.2 1,019.6 631.3 289.7 283.6 102.20

Total including Pvt. Proceeds

5,409.8 3,719.9 2,150.8 1,634.8 820.7 1447.3 606.30

Privatization Proceeds

133.2 0.0 0.0 0.0 0.0 0.0 0.0

FDI Excluding Pvt. Proceeds

5,276.6 3,719.9 2,150.8 1,634.8 820.7 1447.3 606.30

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Sector Wise FDI Inflows ($ Million)

Sector 2007-08 2008-09 2009-10 2010-11 2011-12 2012-132013-14(July-Feb)

Oil & Gas 634.8 775.00 740.60 512.20 629.40 559.60 296.20

Financial Business

1,864.90 707.40 163.00 310.10 64.40 314.20 102.80

Textiles 30.10 36.90 27.80 25.30 29.80 10.00 (1.10)

Trade 175.90 166.60 117.00 53.00 25.30 5.70 (8.50)

Construction 89.00 93.40 101.60 61.10 72.10 46.00 14.00

Power 70.30 130.60 (120.60) 155.80 (84.90) 28.40 21.60

Chemical 79.30 74.30 112.10 30.50 96.30 (47.60) 71.60

Transport 74.70

93.20 132.00 104.60 18.70 44.10 (5.20)

Communication(IT &Telecom)

1,626.80 879.10 291.00 (34.10) (312.60) (385.70) (121.20)

Others 764.50 763.40 586.30 416.30 282.60 872.60 236.10

Total including Pvt. Proceeds

5,409.80 3,719.90 2,150.80 1,634.80 820.70 1447.30 606.30

Privatization Proceeds

133.20 0.00 0.00 0.00 0.00 0.00 0.00

FDI Excluding Pvt. Proceeds

5,276.60 3,719.90 2,150.80 1,634.80 820.70 1447.30 606.30

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Investment Trends in PakistanForeign ReservesPakistan's foreign exchange reserves amounted to $18.24 billion in FY2011 as compared to $16.75 billion in FY2010. Foreign exchange reserves demonstrated an increase by substantial margin from $6.4 billion in 2001- 02 to $15.6 billion in 2006-07; a period when Pakistan's economy, along with its stock market, was booming with liquidity and investor confidence.Exports during the fiscal year 2010-11 amounted to USD24.81 billion as against $19.29 billion in the fiscal year 2009-10, thereby showing an increase. Imports during the fiscal year 2010-11 amounted to $40.41 billion in comparison to $34.71 billion in the fiscal year 2009-10. An increase in import bill was reflected by the impact of higher global crude oil and commodity prices, in addition to a shortage of local food items. Pakistan's foreign trade (exports and imports) during FY2002-11 are presented as follows:

Foreign Direct Investment Net InflowsForeign Direct Investment (FDI) has emerged as a major source of private external flows in developing countries around the globe including Pakistan. FDI plays an important role vis-a-vis technology development, assisting human capital formation, contributing to international trade integration, helping in creating a more competitive business environment and promoting enterprise development.However, FDI inflows experienced a decline in developing economies in the wake of the global recession since 2007. FDI inflows in Pakistan also declined to $1.63 billion during FY 2010-11, as against $2.15 billion in FY2009-10. However, FDI has increased by 76 percent from $ 820 million in FY 2011-12 to $1447.30 million in FY 2012-13 periods.

Work ForcePakistan is home to the sixth largest population of the world estimated at 190 million in 2010-11. Pakistan's young population presents a strong investment case in the form of growing domestic demand. Based on the Labour Force Survey 2010-11, Pakistan is endowed with a young labour force of 58.4 million of which 55.1 million people are employed (18.45 million in the urban region and 36.72 million in the rural), compare to 57.2 million Labour force of which 54.0 million people are employed in 2009-2010 (36.27 million in the rural region and 17.785 million in the urban). (Source: Economic Survey of Pakistan)www.paktradeinvest.com/why/economic.html

Regulatory Framework for Investment in PakistanPakistan's investment policy has been formulated to create an investor-friendly environment with a focus on further opening up the economy and marketing the potential for direct foreign investment. Various incentives have been offered to attract foreign investment, including full deportation of capital, capital gains, dividends and profits.

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Investment policiesThe Salient features of Pakistan's Investment Policy 2013 are:● Equal treatment to local and foreign investors.● All economic sectors to be opened to FDI, except a few specified industries like arms

and ammunition, explosives, radioactive substances, security printing, currency and mint.

● Foreign equity up-to 100% allowed for all sectors.● No minimum foreign equity is required in any sector.● Remittance of royalty, technical and franchise fee, dividends, capital and profits is

allowed.● Import of raw material for export manufacturing will be zero-rated.● Tax and tariff incentives package:

● 5 % customs duty on import of plant, machinery and equipment for manufacturing, infrastructure and social sectors.

● 0-5 % customs duty for services sector (including IT and Telecom.)● 0% customs duty for agriculture sector.● No sales tax on import of machinery.● Tax relief in the shape of Initial depreciation Allowance has been provided at

25% of machinery cost to all sectors.Foreign Investment is fully protected by following Actsi Foreign Private Investment (Promotion & Protection) Act, I976.ii. Protection of Economic Reforms Act, I992.

Investment strategyVision 2025 lays down the national consensus on the major challenges faced by Pakistan in the years to come and outlines the approaches to meet the challenges. To accommodate basic needs, alleviate poverty and generate employment for this growing population, GDP growth will have to average some 7% to 8% per year. In Pakistan's resource constrained economy, private investments in productive ventures have to be the prime engine of such growth. Meeting the challenges of the future thus depends on Pakistan's ability to mobilize private investment, both domestic and foreign.Foreign Direct Investment (FDI) will have to play a crucial role in energizing Pakistan's economy. Its contribution will not be limited, providing much needed capital; more important are the non-financial contributions that come along with FDI, notably:● Transfer of state-of-the-art technology.● Integration of domestic production into world-wide production and marketing chains. ● Linkages with domestic businesses (up and down stream effects).International experience shows that economic growth is best promoted by creating a business-friendly legal, institutional and administrative enabling framework for all investments, domestic and foreign alike. Such a framework should provide a "level playing field” for entrepreneurial activities where all investments, regardless of origin, are driven by market forces to their most effective use (optimizing resource allocation efficiency).

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This FDI Strategy is meant to offer a conceptual framework for the co-operation of all stakeholders in energizing private investment in Pakistan and for shaping the role of the Board of Investment (BOI) in spearheading such co-operation.

Special Economic ZonesThe Special Economic Zones (SEZ) Act was promulgated on September 13, 2012 and later this year SEZ Rules were notified. The law provides SEZs to be set up by the Federal or Provincial Governments themselves or in collaboration with the private sector under different modes of public-private partnership or exclusively through the private sector.The fiscal benefits under the SEZ law include a one-time exemption from custom duties and taxes for all capital goods imported into Pakistan for the development, operations and maintenance of a SEZ (both for the developer as well as for the zone enterprise) and exemption from all taxes on income for a period of ten years. The provincial SEZ authorities, set up under the law, are required to move the applications received from developers to the Federal Board of Investment which is to act as the secretariat to the Board of Approvals and the Approval committee.The Board of Approvals (BOA), the highest approving forum is headed by the Prime Minister with membership from economic ministries, provincial governments, public and private sectors. Approvals Committee is headed by the Chairman BOI and membership from Economic Ministries, Provincial Governments, Public and Private Sectors and SEZ authorities (at provincial level including Gilgit- Baltistan) work under the leadership of the chief ministers.

AgricultureSalient features for Corporate Agriculture, Farming (CAF):● Only such companies (foreign and local) will be entitled to CAF that are incorporated

in Pakistan under the Companies Ordinance, 1984.● State land can be purchased or leased for 50 years through open auction, extendable

for another 49 years.● All banks and financial institutions will earmark separate credit share for CAF.● Exemption of duty for transfer of land for CAF.● Dividends from CAF are not subject to tax.● Raw material for the manufacture of agricultural pesticides can be generally imported

at a zero - percent rate of customs duty.● Plant & machinery, equipment and vehicles meant for agriculture, harvesting, dairy,

livestock, poultry, agro-based industries, horticulture and floriculture, etc. under SRO 575 (1) /2006 can be imported at a zero percent rate of customs duty.

TextileTextile Policy 2009-14

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● Textiles Investment Support Fund (TISF) will be established within the ambit of the policy.

● Measures proposed for financing from the TISF include:● Export refinance available at 5%.● Long term loans will be converted on the pricing applicable to LTTF scheme, together

with a grace period of one year on both existing and converted facilities, without the facility of refinancing.

● To settle the past claims under R&D scheme of 2007-08, allocation of Rs5.4 billion for the purpose by GOP.

● The group will contribute part of the investment financing or part of the investment cost through the Technology Up gradation Fund.

● The policy will focus on certain sub-sector issues from fiber to garments including ginning, spinning, weaving, knitting, processing, fashion designs, handloom and handicrafts, carpets, technical textiles etc.

● The policy offers duty drawbacks between 1% and 3% for a two-year period for value added textile exports.

● All textile machinery imports will be zero rated to encourage new investments. ● Import duty on raw material, sub components and components used in local

manufacturing of textile plants and machinery, has been reduced to zero percent.

Construction and Housing ● Housing and construction companies shall be charged via Presumptive Tax Regime

which shall not exceed 1% on yearly receipts.● Stamp duty / registration fee, for the housing mortgage has been rationalized.● All new construction of houses on plots measuring up to 150 sq. yards and flats

having an area of 1,000 sq. feet, have been exempted from all types of taxes for a period of 5 years.

● Banks and DFIs shall extend credit facilities for balancing, modernization and replacement (BMR] of machinery used for housing and construction industry.

● Import of plant and machinery spares by the housing and construction companies, not manufactured locally, shall be exempted from custom and import duties in excess of 10%.

Financial Services● SBP allows complete freedom of investment and deportation of profits / dividends /

disinvestment proceeds to the foreign investors in line with the investment policy.● As per the Foreign Exchange Regulations, any foreign investor can invest in shares /

securities listed on Stock Exchanges in Pakistan, and can repatriate profits / dividends or disinvestment proceeds.

● The investor has to open a Special Convertible Rupee Account with any bank in Pakistan, in order to make such portfolio investments.

IT & Telecom Sector

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● Specific licenses are required from respective authorities e.g. in order to start the cellular operation network, a license needs to be obtained from Pakistan Telecommunication Authority.

Energy (Power, Oil & Gas)● The energy industry is regulated by the Policy for Power Generation Projects 2002,

Policy for Development of Renewable Energy for Power Generation 2006 and Petroleum Exploration & Production Policy 2009.

● Customs duty at the rate of 5% applicable on import of plant, machinery & equipment not manufactured locally for power generation projects whilst zero-percent customs duty applies on plant, machinery and spores imported by power generation projects under nuclear and renewable energy sources like solar, wind, micro-hydra bio-energy, ocean, waste-to energy, hydrogen cell etc.

● For power projects above 50MW one window support to be provided at the federal level. For projects below or up to 50MW support to be provided at the respective provincial level.

● Royalty will be payable at the rate of 12.5% of the value of petroleum at the field gate.● Local petroleum companies are encouraged to establish joint ventures with foreign

concerns.● Import of equipment related to the petroleum & refining sectors allowed on

concessionary rates.● The lube industry has been deregulated.

BankingThe State Bank of Pakistan (SBP), in addition to monitoring the implementation of Banking Companies Ordinance 1962, specifies regulations relating to the monetary system, credit and banking policy and supervises their implementation.

Sector OutlookAgriculture has been the main stay of Pakistan’s economy with a contribution of 20.9% to GDP in FY2010-11. However, Pakistan has also demonstrated its growth potential in the services sector during recent years with increased foreign investment in the economy.Sectors such as IT, financial services and construction are endowed with growth opportunities and capacity to progress, supported by a young demographic nation which is the sixth populous nation in the world. This chapter aims at identifying key business sectors in Pakistan considering their investment determinants in the light of current market as well the opportunities they hold. The sectors have, thus, been analyzed along the lines of the following three parameters to provide a comprehensive outlook:● The Market● Industry Snapshot● The Opportunity

Market

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Agriculture & Allied SectorsThe Agriculture Market● It is the source of livelihood of almost 45.1% of the total employed labour force and

contributed 21.4% to GDP in FY2012-13. ● Total cropped area in 2011-2012 was 22.75 million hectares.

Livestock and poultryThe livestock sector contributed 11.9% to GDP in 2012-13.The value of livestock is 6.1% more than the combined value of major and minor crops.The poultry sector generates employment and income for about 1.5 million people.Poultry meat contributes 26.8% to the total meat production in the country.Pakistan earned $964 million from leather exports and $201 million from meat exports in FY 2012-13.ForestryDuring the year 2010-11, forests have contributed 91,000 cubic meters of timber and 261,000 cubic meters of firewood, in comparison to 83,000 cubic meters of timber and 205,000 cubic meters of firewood in 2008-09.FisheryFisheries play a significant role in the national economy and towards the food security of the country.During July - March 2012-13 the total marine and inland production was estimated to be 467,000 M tons and 261,815 M tons respectively,

Industry SnapshotAgricultureGrowth: 3.3% in 2012-13Major crops: Kharif Crops (summer produce)Rice (1.3% to GDP); Sugarcane (0.7% to GDP), Cotton (1 .6% to GDP)Rabi crops (winter produce) Wheat (contributes 2.8% to GDP)Livestock and poultryGrowth: 3.7% in 2012-13 in livestockAnnual growth of 11.2% in the poultry sectorFisheryGrowth: 1.78%

The Opportunity● The share of livestock demonstrated growth by representing 55.4% of the agriculture

sector and 11.5% contribution to GDP in FY2011 as compared to 30% in FY1991 whilst the share.

● The GOP has initiated mega projects worth Rs8.8 billion in livestock.

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● Pakistan is the third largest producer of raw milk in the world with growth potential at 20% per annum in exports. However only a negligible quantity goes into processing due to lack at technical assistance, research institutes and weak infrastructure.

● GOP plans to launch tree plantation campaign twice a year with a view to increase forest cover to 6% of the landmass by 2015.

Manufacturing and Automotive sectorThe Market● Auto sales witnessed a substantial growth at 20% on yearly basis to 70, 460 units in

the first five months of FY2012 as against sales at 58,784 units in corresponding period last year.

● Pakistan has the second highest number of CNG-powered vehicles in the world with more than 1.55 million cars and passenger buses, constituting 24% of total vehicles in the country.

● Despite the declining economy, Indus Motor Company and Honda Atlas Cars launched new models to their key products, Corolla and City in the local market.

● Car sales are related to the interest rate regime functional in Pakistan especially in the small low and economy segments, whilst purchases in the small-high segment (1300cc and above) are dependent on rising income level and improved living standards.

Market players: Honda Atlas, Pak Suzuki, Indus Motors, Mitsubishi, Dewan Farooque, Sigma Motors, HinopakDomestically manufactured parts account for less than 60% of all components as compared to a targeted 80%-85% and producers rely heavily on imports of key components.

The OpportunityPakistan has one of the lowest motorization levels (8 vehicles per 1000 persons) in Asia compared to India (11), Sri Lanka (25), and Malaysia (641) indicating a domestic market general with growth potential.Declining interest rates regime adopted by SBP likely to induce increased market for purchases in the small-low income segments.The removal of 5% excise duty (passed on to the customers) will enhance sales growth. Fall in steel prices has massively reduced the cost of production of vehiclesThe Engineering Development Board [EDB] is actively implementing the Auto Industry Development Program (AIDP) to achieve the following targets:i. Increase the GDP contribution of the automotive sector to 5.6%,ii. Boost car production capacity to half a million units,iii. Attract an investment of $3 billion,iv. Reach an auto export target of $ 50 million,

Retail Market

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Pakistan's retail and wholesale market is estimated at over $42 billion a year which is serving a population approaching 190 million. This is more important in view of the large number of middle class population and available high disposable income in the age group 25-35 years.This retail growth is also supported by the increasing literacy rate in Pakistan; the current urban population is more educated and has a better understanding of retailer influences on shopping as a larger retailer give quality assurances to consumers.In late 2006 and in mid-2007, respectively, Makro and Metro entered the Pakistan market operating a cash and carry business format. Makro entered through a joint venture between the House of Habib and SHV of The Netherlands as Makro-Habib Pakistan Ltd.It is high time for the foreign retailers to invest in Pakistan. This will help stabilize the global economy in general and the national economy of Pakistan in particular as entry of global retailers in the retailing industry of Pakistan would not only strengthen the retail industry of Pakistan but would also generate more jobs, foreign investments and revenues.

Electronics & other electrical equipmentsThe Market● In FY2009 the market for electrical appliances and household goods was

approximately $1.4 billion and is expected to increase to $2.1 billion by 2014.● Federal Excise Duty (FED) on electrical appliances increased by 15-20% during

FY2008 in order to discourage import of electronic goods. Further in June 2009, GoP reduced duty on mobile phone sets by 50%.

Industry SnapshotMarket size $1.4 billion in 2009Market players: Philips, LG, Haier, Dawlance, National, Mitsubishi, Waves,Noble, Sony, Samsung, Panasonic

The Opportunity● Export of electronics was approximately $143 million in 2008 and is projected to

increase to $947 million by 2013.● At present the middle class consumers, who are unable to purchase imported

electronic products due to increase in rate of FED and depreciation of the Pakistani rupee, are a great source of attraction for companies willing to set up electrical manufacturing units in Pakistan.

● Support fund of Rs2.5 billion has been allocated for the engineering sector by the Federal Government in the Trade Policy 2009-10.

● GOP established the Technology Upgrade and Skill Development Company in 2007 with the aim of further developing the electronics industry focusing on areas such as intellectual property (IP) protection.

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● In 2009 GoP lifted duty on completely knocked down CKDI units, reduced and extended a favorable 5% tariff rate on semi knocked down (SKD) kits for LCD / Plasma television manufacturers in order to curb illegal imports.

● Rapid growth is anticipated in mobile subscriber penetration implying progress for the mobile handset market particularly in the lower and middle tiers and under- penetrated semi-urban and rural areas.

● Demand prospects from enterprises in the growing sectors of telecom and financial services.

Pharmaceutical SectorThe Market● In 2008 the health care and pharmaceutical sector contributed 2.2% to the country's

GDP, with the pharmaceutical sector solely contributing 1% to GDP (Rs101.6 billion).

● Demand for pharmaceutical products has been growing at about 10% -15% a year over the past few years.

● There are 455 licensed pharmaceutical manufacturers in Pakistan and 29 multinational companies (MNCs). The remaining demand is met by 212 drug importers.

● The sale of pharmaceutical products in international markets has almost doubled during the last five years. The industry is focusing on an Export Vision of $500 million by 2013. In the meantime, exports are also likely to get a boost due to new regional and global opportunities.

● Unlike global trends drug demand does not follow a seasonal pattern and sales remain similar throughout the year because of poor health and environment conditions.

Industry SnapshotMarket size: $1.35 billion as at 31 March 2009CAGR: 12% over the last five years until April 2009Capital investment: $ 0.5 billion (as of March 2009)Major Market Players: Galaxo SmithKline Pakistan, Johnsons & Johnsons, Aventis Ltd., Reckitt & Benkiser, Roche, Abbot Laboratories, Merck, Marker, Novartis, Pfizer Laboratories.Market Share: Tap 50 producers contribute to 84.5% of the market shareTop 50 domestic producers contribute to 45.5% of the market shareDomestically produced drugs: Pain killers, anti-stress and anti-depressants, anti-infective and penicillin etc.Imported Products: Antibiotics, vaccines, analgesics, tranquillizers, drugs for treating cardiovascular diseases & cancer.Import Markets: US, UK, Germany, Switzerland, Japan, and Netherlands and France

The Opportunity

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Rising life expectancy thus consequent rise in number at elderly people and increasing urbanization would stimulate demand tor pharmaceutical products and health care services.Customs duty on import of packing materials has been reduced tram 25% / 20% / 10 % to just 5%, on import at polyacrylate, piston caps, laminated heat sealable paper, craft paper (wax coated) non-woven Fabric and non-woven paper.Spending’s on health care and pharmaceutical products are expected to rise from Rs261 billion in 2008 to Rs424 billion in 2013.The export size of pharmaceutical industry is currently at $101 million and has the potential to grow many folds to at least $1,000 million.

Industrial & Commercial MachineryThe MarketIndustrial sector contributed 25.8% to Pakistan's GDP in 2010-11.The sector mostly imports machinery, usually reconditioned, either in part or full.Import of plant & machinery currently has the second highest share in Pakistan's import bill, after petroleum products.Major sectors using industrial machinery are textile, cement, engineering, construction and fertilizer.Power generating machinery worth $1,035 million has been imported in Pakistan during FY2011.Pakistan imported textile machinery worth $3.l8 million during July-Nov 09.

Industry SnapshotMachinery players: $5.5 billion during 2008-09Machinery Imports: Descon Engineering, Ados Pakistan Limited, Siemens Pakistan, Heavy Mechanical ComplexThe OpportunityGreat opportunity exists for manufacturers at power generating units due to the increasing power shortages currently prevailing in Pakistan.The engineering industry is ready to present its authorizations at the international level in areas including machinery and equipment tor chemical and Fertilizer plants given the clue support by both the GoP and the investors.The Ministry at Petroleum and Natural Resources is mulling over the proposal for import of used machinery tor the up gradation at refineries.

Textile sectorThe MarketThe textile and clothing industry has been the main driver of Pakistan’s exports for the past 50 years in terms of foreign currency earnings and job creation.75% to 80% of total cotton and synthetic production is exported in the form of yarn, fabric, readymade garments, bed wear & made ups.Pakistan is the fourth largest producer of cotton and third largest user of cotton.

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The sector’s contribution to total exports has averaged nearly 60% during the last six years and declined to approximately by 53% during FY2011. Textile Sector contributed 9.5% of GDP and 3.8% employment of total labour force. During FY2011 the sector benefited from recovery in retails sales in advanced economies and increased price differential in local and global yarn prices.Investment of about $7.5 billion has been made in the textile industry during the last ten years (1999-2009). A sector wise breakup of the void is shown.

The OpportunityPakistan is one of the major cotton textile product suppliers in the world market, with a share of world yarn and cotton fabric trade of about 30% and 8% respectively.Although the GOP has directed efforts to diversify exports as well as the industrial base, the textile sector remains the backbone of industrial activity in the country.The five-year Textile Policy 2009-14 offers approximately $1 billion cash subsidy to the textile and clothing sector to boost exports. It plans to boost textile exports to $25 billion from the current $17.8 billion by 2014.The package for the sector carries special duty-drawback rates, besides repayment of earlier research support, subsidy on long-term financing loan and development and other subsidies. The policy focuses on export promotion measures, instead of steps to increase production and revive the industrial sector. Under the new policy, the textile industry has been exempted from load-shedding. It will also enjoy priority in gas allocation like the fertilizer sector. An amount of Rs2.5 billion has been allocated to make export refinance to be available at 5%.Industry SnapshotTotal exports: 53% in FY 2011GDP Contribution: 9.5% in 2010-11Employment: 38% of overall employmentFDI: $12.4 million (July – December 09)Listed companies 209

Infrastructure Telecom & IT SectorThe MarketThe telecommunication sector contributes 3% to the country's GDPPakistan IT exports exhibited a 5-year CAGR growth of 35% and amounted to$I 84 million in FY2009 against $I54 million in FY2008.At the end of October 2009 the total telex-density reached 62.4%, with the cellular sector having the leading shore followed by Fixed Local Loop (FLL) and Wireless Local Loop (WLL).The cellular companies operating in Pakistan had a subscriber base of over 100 million of the end of FY 2011.There are currently four major fixed landline operators with Pakistan Telecommunication Company Limited (PTCL) and National Telecommunication Corporation (NTC) being the mature operators, while Nayatel and World call joining in very aggressively.

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Telecom sector in FY 2011 contributed over Rs116.9 billion to national exchequer whereas Telecom revenue shows all time high Rs363 billion (boast of 5.4%) and investment in telecom $ 493 million.WLL services are available across Pakistan with seven operators providing services in licensed areas in addition to PTCL operations. There are 2.71 million WLL subscribers as in October 2009.WLL penetration has increased from 0.17% in 2005 to 1.6% in 2011, with subscribers growing at a CAGR of 77% with a balancing gain and drop effect visible in WLL and FLL service subscription for PTCL during FY 2009.Internet usage continues to grow and usage subscription was close to 19 million internet users at the end of 2009, with penetration levels at 10.6%The telecom sector attracted over $79 million worth which is 5% of total FDI in Pakistan.Pakistan is the first country in South Asia to implement Mobile Number Portability (MNP), with over 1.I4 million subscribers having availed the facility since June 2009 due to the implementation of the MNP project.

Policy Announcement:Rate of FED on telecom services is reduced from 21% to 19% to reduce the cost.Industry SnapshotMarket size:Telecom Cellular Subscribers: Over 100 million by end FY2011Fixed-line and WLL subscribers: 5.72 million by end FY2011Internet Subscribers: 19 million in FY2009 including 414,000 broadband subscribersInvestment of $493 million in FY2011 1,595 registered IT companies (60 foreign IT and telecommunication companies)Market players:Mobilink, Warid Telecom, Telenor, China Mobile, WorldCall, PTCL, UfoneEmerging Technologies:3GS, WiMaxThe OpportunityReduction in loyalty and license fee by PTA and adoption of simple and liberal licensing policies provide ample opportunities.Availability of new SIM cards at cheap prices will further enhance demand for cell phones, whilst the availability of second hand phones on cheap prices will increase the demand for SIM cards.Alternative fixed-line providers are starting to offer WLL and long-distance international (LDI) services in competition to PTCL, thus providing opportunities for infrastructure suppliers.Based on data provided by PTA, there is still room to penetrate further in the low cellular tele-density areas of Baluchistan and N.W.F.P.Subscription growth in the medium to long-term is likely due to inclination of demographics towards young and middle aged people amidst increasing urbanization.

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There are strong growth prospects in broadband services with only less than half o million broadband subscribers in Pakistan as compared to over 80 million subscribers each in China and US. There are about 19 million users of internet in Pakistan with many still using dial up connections.Based on growth prospects, Pakistan ranks fourth in terms of broadband internet growth globally, supported by proliferation of local and foreign companies into the market and the decline in tariffs.

Power-generation sectorThe MarketThe power deficit has been a key issue for industrial and commercial activities.The current supply shortage has been estimated at 7,500 MW (megawatts) with frequent electricity outages experienced country-wide in FY2011whereas demand of electricity growing at over 10% per annum.67% of Pakistan's electricity generation is tilted towards thermal power generation with power plants operating at a reduced capacity utilization of 34% presenting opportunities for investment in plant machinery.Two nuclear power plants; Karachi Nuclear Power Plant (K-1) and Chashma Nuclear Power Plant unit 1 (C-1) are operational, while construction of a third plant, Chashma Nuclear Power Plant unit 2 (C-2) is also in progress.In order to meet the current and future energy demand, the GoP is working on different power generation projects which are expected to contribute additional power supply of 9,817 MW by the end of 2011-12 to the installed capacity of 19,754MW in 2008-09. A further breakup of expected increase in annual capacity is as follows:Period Expected: Capacity to be installed2010-15 14,022 MW2015-20 23,271 MW2020-25 16,077 MWPakistan Atomic Energy Commission has also been given the task of increasing nuclear power generation capacity to 8,800 MW by the year 2030.With the expansion of electricity network, the number of consumers also increased from 10.8 million in 1998-99 to 18.5 million consumers in March 2009.Pakistan enjoys abundance in coal resources estimated at over 185 billion tons, including 175 billion tons identified at Thar, in the Sindh province. Only 18% of total gas reserves have been discovered in the last decade.Zorlu Energy Pakistan limited has commissioned its first phase (6MW) of a wind power plant in April 2009. Zorlu has indicated that it would like to install an additional 2GW of renewable energy capacity in Pakistan by 2015.Pakistan's Executive Committee of the National Economic Council has approved infrastructure projects worth $11.78 billion, including the flagship Diamer-Bhasha hydropower dam. Pakistan and China have also signed a MoU to build the Bunji dam in Astore district in the north with power generation capacity of 7,000MW.

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Industry SnapshotDemand & Supply: Over 10% in FY2011.Installed Power 20,681 MW in FY2011Generation Capacity:Major players with installed capacityThermal: Central Power Generation Company Limited at Guddu Hydral plants: Tarbela plant (3.05GW), Mangla (1GW), Warsak (240MW) and Chashma (184MW)IPPs-- thermal: Kat Adclu (1GW); Hubco (1.3GW)Nuclear: Chashma-1 (3OOMW) and Kanupp (125MW)Electricity supply: WAPDA & KESC

The Opportunity● The rising energy shortfall, high vulnerability to oil prices, and expensive energy

import options, all have resulted in significant government attention and incentives for the sector.

● The GoP is offering increased incentives to the private sector for the task of developing independent power producers {IPPs) and rental power projects (RPP). The GoP guarantees 15% $ IRR along with passage of all expenses to the consumer and 17% for hydel generation. Thus providing predictable multi-year and long term tariff.

● Under the remote village electrification program, the Alternative Energy Development Board IAEDBI plans to electrify 7,874 remote off-grid villages in Sindh and Baluchistan.

● In order to meet enhanced gas requirements, The GoP has been providing improving economic terms for investment in oil and gas exploration through its petroleum policies.

● Further, in order to tap the mass reservoir of coal reserves at Thal, GoP is considering offering $ indexed IRR of 20-21%.

● AEDB is actively working to install 103 micro hydro power plants in Chitral as well as other locations in the Northern areas.

● The Asian Development Bank (ADB) has approved a $810 million multi- tranche financing facility for the power sector.

Transportation sectorThe MarketAlthough the quality of roads generally improved in 2008 due to facilitation.National Highway Authority's (NHA) planned to invest $536 billion in the sector. This plan benefited from a $900 million multi-tranche loan from the ADB. However, in FY2011, 10% of roads were destroyed due to floods.The cargo business generated Rs6.4 billion in 2010-11 as compared to Rs4.98 billion in FY2009. Cargo capacity increased by 8.8%.KPT handled record cargo-volume of 41.4 million tons in FY2011 (July-March)Industry Snapshot

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Road network:259,463 kmHigh Type Roads:180,866 kmLow Type Roads:78,597 kmEarnings:Pakistan Railway: Rs13, 060 million against in FY2011 against Rs22,269 million in FY2010.PNSC Profit Tax: Rs. 2,552 million since July 2010 to March 2011 whereas Rs2,341 million July 08 to March 09Railway network: 8,163 kmInternational Airports: 09Sea-ports: 3

The OpportunityRailwaysMajor development schemes include track renewal of 240 km of rails and 220 km of sleepers planned for main line.447 CKD wagons received from China were designated to be manufactured in Pakistan Railways Workshop in Moghalpura in 2009, thus completing the scheme for Procurement / Manufacture of 1,300 high capacity wagons.400 old coaches were rehabilitated in FY09-10 fiscal year 2009-10.

AirportsCivil Aviation Authority (CAA) will develop the International Airport in Islamabad and make it operational by the end of 2011, which is expected to cost Rs37 billion.CAA will construct the New Gwadar International Airport by the end of December 2011, with the total estimated cost of Rs7.5 billion being financed under the Public Sector Development Programme.To enhance the trade route internationally with Afghanistan and central Asian countries, the CAA has planned to upgrade the Peshawar International Airport in the near future.

RoadsNHA plans to launch a Motorway Advisory Radio (MAR) system during financial year 2009-10 under Public-Private Partnership. This system will provide updated information regarding fog / low visibility of areas and will suggest precautionary measures for traffic congestion and incidents / accident related information.The National Trade Corridor (NTCI initiative envisages an investment program of PKR325 billion, to be completed by 2017-I8. This step is expected to enhance National Highway Authority's revenue to approximately Rs543 million during financial year 2009-10.The long anticipated modernization work will start on the Karachi Circular Railway in 2010 and is plausible to be completed by 2014.

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Construction Sector Residential & Commercial ConstructionThe MarketThe construction industry of Pakistan had a total value of about $3.6 billion in 2009 and this value is expected to rise up around $4.2 billion by 2012.Total GNP value of the sector was $4.4 billion in FY2011.Residential construction is being carried out under the Prime Minister’s ‘Mega Housing Scheme’ which involves one million low cost houses per year.On GOP’s invitation international companies from Germany, Canada, Iran, Italy and Malaysia have participated in the construction sector, in order to facilitate execution and completion of the GOP’s mega housing scheme.The construction industry in Pakistan has tremendous potential; with a sizable proportion of trained professionals such as approximately 80,000 graduate engineers, 20,000 licensed constructors and 1,000 registered consultants.

Industry SnapshotContribution to GDP: 2.51% of GDP in 2011Total Capital Investment: $28.87 billion in 2009Imports of machinery and transport equipment: Rs626 billion in 2008-09Employed labour force: 7.65% in 2009

The OpportunityKarachi, the largest city of Pakistan, currently has a requirement of 500,000 additional housing units per year, in order to supply demand for the ever growing population.Rising level of urbanization increases from 34.9% in 2005 to 50% by 2035, as estimated by the UN, provides ample development opportunity in the sector.Investment policies in Pakistan permit 100% foreign equity ownership in the construction sector.SECP has introduced two types of Real Estate Investment Trust schemes, namely rental and developmental, providing opportunity to the general public to pool funds for investment in real estate sector.The Infrastructure Project Development Facility (IPDF) team has stated that around 11 projects, valued at approximately Rs200 billion, are in the development stage.

Mining & Quarrying sectorThe MarketMineral potential in Pakistan though, recognized to be excellent, is inadequately developed as its contribution to GNP in FY2011 stands at 4.8 billion in comparison to 4.1 billion in FY 2010 .The Mining and Quarrying sector had a GNP total value worth $4.8 billion in FY 2011.During FY 2011, the mining and quarrying sector has contributed 2.4% of GDP and has growth rate of 0.4% in comparison to 2.2% in FY 2010.

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More than 50 metallic and non-metallic minerals have been discovered in Baluchistan up till 2007- 08.About 1,344 Mineral Concessions i.e. prospecting licenses & mining leases had been granted up till 31 December, 2008 to different private/ public sector for small scale mining of various minerals.

The OpportunityExploration activities are in progress in collaboration with foreign investors. About 79 mineral titles i.e., reconnaissance licenses, exploration licenses and \mining leases have also been granted under large scale mining in the Baluchistan province.Pakistan Mineral Development Corporation offers joint ventures in the following projects;● Gold & Base Metals Exploration in the Northern Areas of Pakistan● Coal Briquetting Plant● Coal mining for small thermal power plants● Production of Ultra Refined Salt.

Financial Services SectorThe MarketThe size of the country’s financial sector, which includes Banks, Non-Bank Financial institutions (NBFIs), Microfinance banks (MFB), Central Depository of National Savings (CDNS), the insurance sector and financial markets, in terms of assets, has increased to Rs8.2 trillion by end June 2009 from Rs7.1 trillion at end of December 2007.

Non-Bank Financial Institutions (NBFIs)NBFIs include Non-Bank Financial Companies, Mutual Funds and Modarabas which are regulated by SECP and DFIs which are regulated by the SBP.NBFI's assets stood at Rs470.I billion in FY2009 as against Rs585.6 billion in FY2008.The size of the total assets relative to GDP at 5%, and total financial sector assets at 7.6% as provided by Financial Stability Review Report of SBP 2008-09.

Non-Bank Financial Companies (NBFCs)In November FY2009, SECP implemented some necessary measures to revamp the regulatory framework for NBFCs and amended the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003, in addition to issuing the Non-Banking Finance Companies and Notified Regulations, 2008.

InsuranceThe insurance industry has enjoyed healthy growth in the last few years driven by favorable economic conditions, expansion of the financial sector as a whole, privatization of large state owned entities and foreign investments. The insurance industry has growth of I6.6% in CY10 against 14.5% in CY09.

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The share of insurance assets in the total assets of the financial sector is 4.5% and the sector assets constitute 3.3% of GDP in CY08.Insurance asset in CYIO stood at Rs390 billion out of which 74.8% is accounted for life insurance.In CY08, 45 insurance companies were operating in Pakistan. Among these, 34 were general insurance companies; five were in the business of life insurance, with 1 Reinsurance Company and 5 Takaful.

Development Financial Institutions (DFIs)As of end-CY08, there were 7 DFIs operating in Pakistan, all of which are joint ventures between the GoP and other governments such as Kuwait and Oman.Mutual fundsMutual funds since CY2008 significantly declined in assets. However, in H10-CY11 mutual funds industry witnessed a recovery of 24% in net assets.Net assets reached the highest ever level of about Rs425 billion in April FY2008, when the stock market was at its peak.The mutual funds sector has grown rapidly in the last few years and has accounted for the largest segment (more than 50%) in total assets of the non-bank financial sector in FY2008.

The OpportunityExpanding Microfinance Outreach (EMO) has been developed to extend reach of microfinance facilities to 3 million borrowers by 2010.SECP will promote competition and introduce innovative products in the insurance market via foreign investment.Low penetration of branches with only seven branches per 100,000 people and 0.22 branches per I,000 kilometers, on an average, 0.10 ATMs per 1,000 kilometers and 226 bank accounts per 1,000 adults.Positive prospects for mobile banking, given high mobile density of 54% per 100,000 people especially in areas which are not feasible for expansion through ATMs and point-of-sale kiosks due to higher expansion costs.SBP has agreed to provide Rs215 million to Pakistan Microfinance Network (PMN) and NRSP Microfinance Bank through the Institutional Strengthening Fund (ISF) under a Memorandums of Understanding (MoUs) signed with them.The role of life insurance as a financial intermediary is particularly important in countries like Pakistan with low levels of financial penetration at 0.8% as against regional level of 2%.

Other Sectors

Education sector

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According to Pakistan Social and Living Measurement Survey 2010-11, the overall literacy rate (age ten years and above) is 57.7% (Male 69.5%, Female 45.2%), with 73.2% in urban areas and 49.2% in the rural areas.The trend of investment on education in terms of GDP has been on the lower side with 2.50% & 2.47% in the years 2006-07 and 2007-08 respectively, and was estimated to be 2.10% during 2008-09. The primary cause is considered to be the financial constraints in the given economic situation.Investment case for education with only 124 universities catering to approximately 190 million people in the country and approximately 20 million school age children lacking access to school material and books for different tiers of education, In some cases outdated and there are limited resources for teachers’ training resources and research laboratories.The GOP approved the new national education policy in September 2009, which suggests raising the annual budgetary allocation for the sector to 7% of the GDP and increasing literacy to 85% by 2015.Foreign assistance of $1,974 million has materialized in the past few years targeted at improving education in the country.Pakistan has a young workforce of 55.17 million (2010-11) with a literacy rate of 56.2%, leaving greater room for public as well as private partnerships to enlarge access to education, build infrastructure as well as train staff to achieve a skill development system that can be benchmarked against international standards.

Tourism SectorThe tourism sector of Pakistan has great potential to attract investment.Pakistan has a blend of beauty and historic sites, ranging from the peaks of Karakorum to the historic civilization of Mohenjo-Daro.Tourism services such as airlines, hotels, road transport, souvenir shops not only provide employment but also provide unique business avenues in the diversified geographical regions of Pakistan.

Food & Nutrition SectorIn Pakistan people still do not have easy access to food to meet their basic requirements for protein and deficiency at essential micronutrients, such as iodine, vitamin A, and iron.The average caloric availability remained around 2363 calories per capita per day and protein at 70gms per capita per day against the average requirement at 2350 calories per capita per day. Currently the GoP is taking actions to rectify the situation of shortage at quality food supply in the country. Some at the initiatives taken are food support programme for poor households, incentives to improve the nutritional status at Government Rural Primary Schools, Micro Nutrient Deficiency Control Programme etc.

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Health SectorThe health sector is a priority for the GoP, since the high correlation between the expenditure on health and productivity in developing countries like Pakistan emphasizes the importance at improving health services as an aid to growth.Per capita health expenditure in Pakistan is $47 with GoP allocating 3% of its total expenditure to health sector whilst the private sector provides 84% at total health expenditure.Pakistan's key health indicators are shy at international targets forming the base case at GoP measures to reform the sector and progress is required at the policy and economic front in order to reduce the burden at diseases.Health facilities in Pakistan are provided through health care delivery systems and Public Health Intervention (PHI). Programs under PHI include National Program tor prevention of HIV / AIDS, Malaria, Hepatitis, child healthcare etc.There are 12 healthcare attendants to every 10,000 people.Low level of life expectancy (65 Years in 2007), high child mortality rate under 5 year age (73/1,000 in 2007) and high population growth rate at 2.1% surpassing regional average of 1.5%; indicate the increasing need for better health care and preventive services in the country. Only 58% of the population has access to quality sanitation as against the global average at 78%.Sectors warranting attention include inadequate sanitation facilities, unsafe water, poor living conditions and malnutrition.

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100 Performing Ceos and Leaders of Pakistan

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